KILROY REALTY (HEARTS) SAN FRANCISCO
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|We snapped Kilroy Realty Corp prez John Kilroy at Allen Matkins’ View From the Top in Beverly Hills this week. The LA-based REIT has invested heavily in the Bay Area over the past few years, targeting tech, media, and entertainment tenants. He said there’s no question that San Francisco is the strongest office market i n the country, evidenced by tech leasing—3M SF year-to-date and another 2M SF that’s looking for product in a market where none exists. KRC “aggressively bought” at attractive pricing compared to today, he said, but “it’s doubtful that we’re going to be able to find a core building that doesn’t have some kind of a value-add play.” The firm has about $285M of development under way in the Bay Area.|
|The exec shared an update on KRC’s repositioning of 370 Third St; he had “a hard time getting my head around this building” but CIO Eli Khouri and others were “persuasive.” The transformation of the former Pacific Bell call center will be finished in January. Pac-12 Enterprises’ multi-floor lease, which includes a studio, was probably the fastest deal he’s seen in his life. Eight months from the time Pac-12 first walked through the building, it had its first broadcast. San Francisco’s “quirky” and sometimes difficult to do business in, he noted, but when the city wants to get something approved, it can take just a matter of weeks. “This is a city that has a positive buzz and a can-do attitude.”|